After recent fact-finding tours of Tra and Basa fish breeding farms and processing factories in Vietnam, the US Department of Commerce announced that Vietnamese businesses have not dumped their products on its market. However, the anti-dumping tariffs on these products exported to the US will be extended another five years as the US International Trade Commission (USITC) fears that its catfish industry will be seriously injured if the high tariffs are lifted.

In addition, the US Department of Agriculture is finalising its Farm Bill which will be enacted in January 2010. The bill will apply the “equivalency policy” which includes Vietnamese Tra and Basa fish in the list of catfish species. This means the products will face tough technical barriers before entering the US.

Harvesting Basa fish in the mekong Delta

Ngo Van Thoan, Vietnamese trade counsellor to the US, says that the inclusion is unfair, as in 2002, the US Congress passed legislation preventing the imported fish from being labelled as catfish.  

“The new move shows that the US is building technical barriers to protect domestic production,” says Mr Thoan.

There is no denying that the country’s Tra and Basa farming and processing industry will face numerous difficulties if the two fish species are designated as catfish. Statistics show that only 31 countries across the world meet the US’s food safety and hygiene regulations.

The US is a major importer of Vietnam’s Tra and Basa fish and the extended imposition of the anti-dumping tariffs will increase the burden on Vietnamese processors and exporters.

Nguyen Hoai Nam, VASEP official

According to Nguyen Hoai Nam, Vice General Secretary of the Vietnam Seafood Exporters and Processors (VASEP), the imposition of the tariffs will have adverse effects on both sides. It will reduce the amount of Tra and Basa fish exported to the US while Americans will buy the products at higher prices and have fewer choices than before.

Apparently, the new bill will not only affect American importers but also Vietnamese farmers who are raising millions of tonnes of Tra and Basa fish in the Mekong Delta for export. Vo Van Trac, vice president of the Vietnam Fishing Association, says that his association will adopt measures to protect farmers’ interests.

It’s worth mentioning that the US decision to impose high tariffs on the Vietnamese fish does not reflect the realities of production and trading of the fish. It has been opposed by the American Seafood Distributors Association and American importers as it directly affects their trading. 

The fact is that there are no precedents for getting the US to lift anti-dumping tariffs on imports and Vietnamese seafood processors and exporters are advised to adopt appropriate solutions to the high tariffs and the farm bill.

Mr Thoan says that the US is a huge market and product quality is the primary factor behind the successful penetration of this market.

“To this end, we must set up a set of criteria for our Tra and Basa fish, meeting international standards,” says the trade counsellor. “It must cover the whole process, from the selection of fish varieties to environmental protection, fodder, processing and preservation. By doing so, our products will certainly be recognised internationally.”

He says Vietnamese Tra and Basa fish are selling well abroad and the sector is being encouraged to promote the image of these products.

“Consumers should be aware that the Vietnamese fish are being raised technically and commercially. Processors should more closely cooperate to exchange experiences and modernise production lines.”

Processors should cooperate closely to overcome new trade barriers

VASEP official Nguyen Hoai Nam echoes Mr Thoan, saying “We must be committed to sustainable aquaculture and development to produce high-quality and highly competitive products. Export businesses should be provided with up-to-date information to anticipate challenges and seek ways to overcome trade barriers.”

Developing niche markets to avoid heavy reliance on the US market is another solution proposed by experts. After the US-filed suit against Vietnamese Tra and Basa fish, the number of processors and exporters of these fish species has increased significantly from just 40 to more than 200 last year exporting their products to 140 countries and territories.

“However, we will not lose out on the US market where our fish products are selling well and our businesses are gradually meeting this demanding market’s requirements,” says Mr Nam.

Experts also suggest that Vietnamese businesses become familiar with lobbying to overcome future trade barriers set up by importers.